News

BlackBerry’s Canadian lifeline

Failing BlackBerry could be rescued by Canada’s answer to Warren Buffet (Paul Rogers)

A TYCOON known as Canada’s Warren Buffett is closing in on a rescue deal for BlackBerry, the beleaguered mobile phone maker.

Prem Watsa, an Indian-born chemical engineer who has become one of Canada’s most successful investors, has assembled billions in backing from the country’s biggest pension funds for a bid. BlackBerry hoisted the “for sale” sign last month.

The phone maker made the move after failing to reverse the heavy losses suffered by investors since the launch of Apple’s iPhone in 2007.

BlackBerry’s shares have crashed from C$148 in 2008, to C$11.29 at the end of last week. More than C$70bn (£45bn) has been wiped off its market value, which stood at C$5.9bn last week.

Watsa’s company, Fairfax Financial Holdings, is BlackBerry’s biggest shareholder with a 10% stake. The tycoon was also on its board but stood down when the sale plans were revealed to avoid any conflict of interest